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Pensions stick with hedge funds despite CalPERS exodus

The California Public Employees' Retirement System building in Sacramento, Calif.
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A high-profile hedge fund exodus from a huge pension manager does not appear likely to spark a major movement.

Pensions, investment consultants and other money managers at an industry conference this week dismissed the idea that the California Public Employees' Retirement System's decision to cut a $4 billion slate of hedge funds would stall the otherwise steady increase of public retirement plans into so-called alternative assets.

"I haven't heard any rumblings about other pensions pulling out of hedge funds," Arn Andrews, chief investment officer for the city of San Jose Department of Retirement Services, said Monday on the sidelines of the Alpha Hedge West conference in San Francisco. "You either have a strategy or you don'tpeople are sticking to their plans."